Morphic Global Opportunities Fund

17 Jun 2015 - Australian Fund Monitors

Morphic Global Opportunities Fund rose 3.79% in May as its benchmark (MSCI AC World Total Return in Australian Dollars) rose 2.91%, resulting in
outperformance of 0.88%.

17 Jun 2015 - Morphic Global Opportunities Fund

By: Australian Fund Monitors

Report Date	12 June 2015
Manager	Morphic Asset Management
Fund Name	Morphic Global Opportunities Fund
Strategy	Equity Long/Short
Latest Return Date	May 2015
Latest Return	3.79%
Latest 6 Months	16.51%
Latest 12 Months	30.03%
Latest 24 Months	58.28%
Annualised Since Inception	28.54%
Inception Date	02 August 2012
FUM (millions)	AU$110
Fund Overview	The Fund will primarily consist of Global listed shares, and will generally have at least 50% of its net assets invested in these. It may also have short positions in shares that the Manager believes are over-valued, and likely to fall in price, as well as long and short positions in index futures and other derivatives, fixed interest instruments, commodities, credit instruments and currencies.
Manager Comments	Morphic Global Opportunities Fund rose 3.79% in May as its benchmark (MSCI AC World Total Return in Australian Dollars) rose 2.91%, resulting in outperformance of 0.88%. Since inception the Fund's annualised return per annum was 28.54%, compared to the AFM's Global Equity Index of 28.12%. The biggest contribution to performance was from the exposure to the US health service sector, represented by HCA Holdings and Anthem. The second biggest winner came from the US bank exposure as banks there rallied on the back of a steeper yield curve, improving their margins. The main detractors from the month's performance was mainly due to the pullback in the Chinese market and stocks relating to that position. The Fund has over 50.2% of their equity exposure in North American and 33.0% in the Financial Sector. The Fund closed May fully invested, with the continuing overweight to China, along with lesser overweights to India and Japan, funded from underweight positions in the US and Europe and the rest of the emerging markets. Click below to read the Fund Manager's monthly report and their June outlook of the market.
More Information	Fund Profile Manager's Report AFM Research Reports

Bennelong Kardinia Absolute Return Fund

16 Jun 2015 - Australian Fund Monitors

The Bennelong Kardinia Absolute Return Fund rose
0.41% in May, to bring the Fund's annual performance since inception to 13.01% compared to the ASX200 Accumulation benchmark's 5.60%.

16 Jun 2015 - Bennelong Kardinia Absolute Return Fund

By: Australian Fund Monitors

Report Date	11 June 2015
Manager	Kardinia Capital, a Bennelong Funds Management boutique
Fund Name	Bennelong Kardinia Absolute Return Fund
Strategy	Equity Long/Short
Latest Return Date	May 2015
Latest Return	0.41%
Latest 6 Months	6.06%
Latest 12 Months	9.27%
Latest 24 Months	17.46%
Annualised Since Inception	13.01%
Inception Date	01 May 2006
FUM (millions)	AU$205.9
Fund Overview	The Fund consists of a concentrated long/short portfolio typically comprising 20 to 50 ASX300 listed stocks, generally with a long bias aligned to the overall market direction. On average since inception the Fund's exposure has averaged 40% net long. There is a slight bias to large cap stocks on the long side of the portfolio, although in a rising market the portfolio will tend to hold smaller caps, including resource stocks, more frequently. On the short side, the portfolio is particularly concentrated, with stock selection limited by both liquidity and the difficulty of borrowing stock in smaller cap companies. Short positions are only taken when there is a high conviction view on the specific stock. The Fund uses derivatives in a limited way, mainly selling short dated covered call options to generate additional income. These typically have less than 30 days to expiry, and are usually 5% to 10% out of the money. ASX SPI futures and index put options can be used to hedge the portfolio's overall net position. The Fund's discretionary investment strategy commences with a macro view of the economy and direction to establish the portfolio's desired market exposure. Following this detailed sector and company research is gathered from knowledge of the individual stocks in the Fund's universe, with widespread use of broker research. Company visits, presentations and discussions with management at CEO and CFO level are used wherever possible to assess management quality across a range of criteria. Detailed analysis of company valuations using financial statements and forecasts, particularly focusing on free cash flow, is conducted. Technical analysis is used to validate the Manager's fundamental research and valuations and to manage market timing. A significant portion of the Fund's overall performance can be attributed to the attention and importance given to the macro economic outlook and the ability and willingness to adjust the Fund's market risk.
Manager Comments	The Bennelong Kardinia Absolute Return Fund rose 0.41% in May, to bring the Fund's annual performance since inception to 13.01% compared to the ASX200 Accumulation benchmark's 5.60%. The Fund's volatility of 7.30% is half that of the ASX200 Accumulation volatility 14.12%. Since inception of May 2006, the Fund's Sharpe and Sortino ratio were 1.14 (Index 0.16) and 2.20 (Index 0.12) respectively. The Fund's net equity market exposure, including derivatives increased to 41.2% (74.3% long and 33.1% short). Long positions in James Hardie, Amcorand Sirius were the largest positive contributors. A long position in Resmed and a short position in Share Price Index Futures (hedging long exposures) were the largest detractors. Click below to read the May 2015 Fund Report.
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Fund Review: Monash Absolute Investment Fund May 2015

16 Jun 2015 - Australian Fund Monitors

Read the latest Fund Review with statistics since inception on Monash Absolute Investment Fund.

Allard Investment Fund

15 Jun 2015 - Australian Fund Monitors

The Allard Investment Fund's (AIF), net of all fees, increased 1.0% during the month of May 2015.

15 Jun 2015 - Allard Investment Fund

By: Australian Fund Monitors

Report Date	10 June 2015
Manager	Allard Partners Australia Pty Limited
Fund Name	Allard Investment Fund
Strategy	Equity Long
Latest Return Date	May 2015
Latest Return	1.00%
Latest 6 Months	11.74%
Latest 12 Months	25.10%
Latest 24 Months	31.42%
Annualised Since Inception	9.99%
Inception Date	01 July 2003
FUM (millions)	AU$139
Fund Overview	Allard Partners is an absolute return, long only security investor with a single mission to provide its clients with a net compound rate of return on their capital of 15% per annum over the long term. With offices in Hong Kong, India and Australia, Allard invests in quoted companies in the Asia Pacific region. Allard's investment approach has remained consistent throughout their history. That is to invest prudently but proactively in well-managed businesses that achieve superior returns on capital in industries with long-term growth potential. The Manager uses both broad top-down guidance and detailed bottom-up analysis to identify suitable markets, industries and companies. As long only investors, a critical factor in their performance has been their preparedness to hold cash when they cannot find companies that meet their criteria or are at a sufficient discount to their valuations.
Manager Comments	The Allard Investment Fund's (AIF), net of all fees, increased 1.0% during the month of May 2015, to bring the Fund's last twelve month performance to 25.10% with a volatility of 6.38. In comparison, the ASX200 Accumulation returned 9.93% with a volatility of 11.75%. The Fund portfolio was invested 75.5% in equities and 24.5% in cash and fixed income. There has been little change since the prior month, in terms of the industry and geographic breakdown of the portfolio. The Fund continues to be most exposed to Financial Services at 17.30%, Conglomerates at 10.80% and Telco's at 10.70%. The geographic breakdown was Hong Kong / China at 43.00%, Singapore 10.80% and Korea 9.70%. The top 5 holdings had 40.10% concentration of the portfolio and 17.20% in the next 5 holdings. Click below to review the latest Fund Manager's Report.
More Information	Fund Profile Manager's Report AFM Research Reports

Bennelong Long Short Equity Fund

12 Jun 2015 - Australian Fund Monitors

The Bennelong Long Short Equity Fund performance in May was down 1.91% compared to the ASX200 Accumulation Index return of 0.40%.

12 Jun 2015 - Bennelong Long Short Equity Fund

By: Australian Fund Monitors

Report Date	05 June 2015
Manager	Bennelong Long Short Equity Management, a Bennelong Funds Management boutique
Fund Name	Bennelong Long Short Equity Fund
Strategy	Equity Market Neutral
Latest Return Date	May 2015
Latest Return	-1.91%
Latest 6 Months	7.35%
Latest 12 Months	3.11%
Latest 24 Months	8.07%
Annualised Since Inception	17.05%
Inception Date	01 January 2003
FUM (millions)	AU$261
Fund Overview	Bennelong Long Short Equity Management applies a qualitative stock selection process to construct a diversified portfolio of paired securities based on relative value. The Bennelong Long Short Equity Management strategy invests primarily in the S&P/ASX 100 and is dollar neutral at cost. In a typical environment the Fund will hold around 70 stocks comprising 35 pairs. Each pair contains one long and one short position each of which will have been thoroughly researched and are selected from the same market sector. Whilst in an ideal environment each stock's position will make a positive return, it is the relative performance of the pair that is important. As a result the Fund can make positive returns when each stock moves in the same direction provided the long position outperforms the short one in relative terms. However, if neither side of the trade is profitable, strict controls are required to ensure losses are limited. The Fund uses no derivatives and has no currency exposure. The Fund has no hard stop loss limits, instead relying on the small average position size per stock (1.5%) and per pair (3%) to limit exposure. Where practical pairs are always held within the same sector to limit cross sector risk, and positions can be held for months or years.
Manager Comments	The Bennelong Long Short Equity Fund performance in May was down 1.91% compared to the ASX200 Accumulation Index return of 0.40%. Long term performance since inception in January 2003, remains sound with annual returns of 17.05% p.a. (Index 8.53% p.a.) and a volatility of 11.79% (Index 12.83%). The short positions were more the driver of the Fund's under-performance than the long positions. A review of the key contributing loss-making shorts, has the Fund Manager confident it was not due to fundamental factors, more the noise associated short-term monthly measurement. The Fund activity for the month of May was modest with weightings revised for few pairs, with a new pair within the Financials sectors - long National Australia Bank / short Bendigo Bank. Click below to read the Fund Manager's complete commentary and future market outlook.
More Information	Fund Profile Manager's Report AFM Research Reports

Fund Review: Insync Global Titans Fund April 2015

11 Jun 2015 - Australian Fund Monitors

Latest Fund Review on Insync Global Titans Fund is now available.

Monash Absolute Investment Fund

10 Jun 2015 - Australian Fund Monitors

Monash Absolute Investment Fund returned -0.40% in May, and the Australian equity market had its first positive month (0.40%) since February.

10 Jun 2015 - Monash Absolute Investment Fund

By: Australian Fund Monitors

Report Date	04 June 2015
Manager	Monash Investors Pty Limited
Fund Name	Monash Absolute Investment Fund
Strategy	Equity Long/Short
Latest Return Date	May 2015
Latest Return	-0.40%
Latest 6 Months	5.11%
Latest 12 Months	2.97%
Latest 24 Months	29.29%
Annualised Since Inception	15.35%
Inception Date	30 May 2012
FUM (millions)	AU$28
Fund Overview	The Monash Absolute Investment Fund is a long/short equity fund, with a home bias to investing in Australia. It invests in shares as a source of specific opportunity, not to go up and down with the market. The fund seeks to identify opportunities in the share market to make positive returns (long and short) irrespective of market conditions. It is style agnostic, as compelling investment opportunities exist across all investment styles from time to time. The Fund places a high priority on capital preservation, and has an absolute return focus in accepting market risk. The Manager's experience across value, growth and discounted cash flow styles allows them to use a comprehensive approach to investment decisions that applies all three. They also have the patience to seek out only compelling opportunities, rather than settling for relative value. The portfolio is somewhat concentrated, looking to diversify across industries and themes, rather than by trying to stay near an index. The portfolio may at times have a large amount of cash or other protection. However once investments are made turnover may be relatively high in order to lock in gains and avoid losses.
Manager Comments	Monash Absolute Investment Fund returned -0.40% in May, and the Australian equity market had its first positive month (0.40%) since February. The Fund's performance since inception was 15.35% with annual volatility of 7.78%, bringing the Sharpe ratio and Sortino ratio to 1.55 and 3.45 respectively. The fund continues to have a low Beta and a relatively weak correlation with the market. Over the last three months, the fund is up 0.75%, while the market is down. Most of the Fund's stocks had a good month, with the average returns from the Outlook Driven stocks and the Product Launch group positive. However the Fund had a weak result from the Event Trade stocks. Click the link below to the rest of the Fund Manager's Report.
More Information	Fund Profile Manager's Report AFM Research Reports

Fund Review: Supervised High Yield Fund April 2015

9 Jun 2015 - Australian Fund Monitors

Fund review on Supervised High Yield Fund, a fixed income fund, is now available.

9 Jun 2015 - Fund Review: Supervised High Yield Fund April 2015

By: Australian Fund Monitors

SUPERVISED HIGH YIELD FUND

Attached is AFM's updated Fund Review on the Supervised High Yield Fund.

We would like to highlight the following aspects of the Fund:

The Supervised High Yield Fund (SHYF) has a 6 year track record investing in fixed interest investments. The Investment strategy aims to deliver returns with zero correlation to equity markets by investing in debt securities with minimal default probability and offering a premium return above the risk free rate.
The Fund is managed by Philip Carden whose experience in debt and capital markets spans 33 years, including time with JB Were's Capel Court Securities and Macquarie Bank, where he was the Executive Director responsible for the Debt Markets Division.
SHYF is an Alternative Income fund which invests in Global and Australian debt markets, with all foreign currency receivables hedged back to Australian dollars.
The Fund utilises a top down analysis of the economic environment and market to screen and identify debt market opportunities which it believes offer low risk with high yield. The next stage is the development of a risk matrix and investment strategy, following which detailed research is undertaken on specific investment opportunities which meet the pre-defined criteria established in the investment strategy.
Prior to approving an investment for the Fund each potential investment is subject to two stress tests. The first of these is for credit and default risk, in which the investment is stress-tested to ensure that in a worst case economic environment it can repay 100% of its principal and interest obligations case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided The second test examines market risk. In this case Carden looks at the worst case scenario for the asset by examining the highest margin over the risk rate that the investment has previously experienced in a crisis situation. Any decline in value under the stress test that exceeds 10% of the Fund's value is avoided.

Australian Fund Monitors

ATTACHED FILES

Supervised High Yield AFM performance report April 2015 (pdf format)

Signature Quantitative Fund

5 Jun 2015 - Australian Fund Monitors

Signature Quantitative Fund returned -2.10% for April, to bring the annual performance since inception to 13.11%.

5 Jun 2015 - Signature Quantitative Fund

By: Australian Fund Monitors

Report Date	28 May 2015
Manager	Quant Investment Management Services Pty Ltd
Fund Name	Signature Quantitative Fund
Strategy	Equity Long/Short
Latest Return Date	March 2015
Latest Return	2.80%
Latest 6 Months	2.11%
Latest 12 Months	9.47%
Latest 24 Months
Annualised Since Inception	15.99%
Inception Date	01 January 2014
FUM (millions)	AU$25
Fund Overview	SQF is a systematic event-driven fund that exploits short-term structural market inefficiencies that are uncorrelated & persistent over time. The fund believes that the market reaction to events is not random; rather there are statistically measureable and predictable behaviour patterns that can be exploited with a systematic and disciplined approach. The fund's investment philosophy is to quantitatively identify research and exploit these event driven or behavioural structural market inefficiencies to generate significant alpha. SQF systematically utilises stock short positions and futures to reduce risk and generate significant alpha SQF has been established to profit from anomalies surrounding event driven, behavioural & factor based structural market inefficiencies which generate significant profits and are uncorrelated & persistent over time. Specific strategies such as dividend arbitrage, index addition and deletion, tax year end, capital raisings, among other strategies are used by the Fund. The Fund's initial focus is on investing in Australian and New Zealand markets.
Manager Comments	Signature Quantitative Fund returned -2.10% for April, to bring the annual performance since inception to 13.11% p.a. In comparison, the ASX200 Accumulation annual return was 10.71% p.a. The Fund's annualised volatility was 8.69%, compared to the Index of 11.32%. The Fund's strong performance has been achieved with lower volatility, bringing the Fund's Sharpe Ratio and Sortino Ratio to 1.19 (Index 0.74) and 2.63 (Index 1.16) respectively. In April, the Capital Raisings and Alpha Capture strategies continued their recent strong performance. The Dividend Arbitrage strategy under-performed, due to an exposure to the banking sector as well as the relative under-performance of dividend yield stocks. Click the link below to view the latest Monthly Report.
More Information	Fund Profile Manager's Report

Insync Global Titans Fund

4 Jun 2015 - Australian Fund Monitors

Insync Global Titans Fund decreased 0.40% in April, bringing the Fund's prior 12 month performance to 19.27%.

4 Jun 2015 - Insync Global Titans Fund

By: Australian Fund Monitors

Report Date	02 June 2015
Manager	Insync Fund Managers
Fund Name	Insync Global Titans Fund
Strategy	Equity Long
Latest Return Date	April 2015
Latest Return	-0.40%
Latest 6 Months	14.17%
Latest 12 Months	19.27%
Latest 24 Months	38.32%
Annualised Since Inception	11.54%
Inception Date	07 October 2009
FUM (millions)	AU$25
Fund Overview	Insync's investment strategy is driven by fundamentals combined with active risk management. Insync's aim is to invest in high quality, large cap global companies at attractive prices. Insync looks for companies that can consistently pay rising dividends and earn high returns on invested capital. Insync aims to provide investors with long term capital growth and some income. The Global Titans Fund is a concentrated portfolio of large cap global companies with downside protection. Insync employs four simple screens to narrow the universe of over 40,000 listed companies globally to a focus group of high quality companies that it believes have the potential to consistently grow their profits and dividends. These screens are size of the company, balance sheet performance, valuation and dividend quality. Companies that pass this due diligence process are then valued using dividend discount models, free cash flow yield and proprietary implied growth and expected return models. The end result is a high conviction portfolio of typically 15-30 stocks. The principal investments will be in shares of companies listed on international stock exchanges (including the US, Europe and Asia). The Fund may also hold cash, derivatives (for example futures, options and swaps), currency contracts, American Depository Receipts and Global Depository Receipts. The Fund may also invest in various types of international pooled investment vehicles. At times, Insync may consider holding higher levels of cash if valuations are full and it is difficult to find attractive investment opportunities. When Insync believes markets to be overvalued, it may hold part of its resources in cash, or use derivatives as a way of reducing its equity exposure. Insync may use options, futures and other derivatives to reduce risk or gain exposure to underlying physical investments. The Fund may purchase put options on market indices or specific stocks to hedge against losses caused by declines in the prices of stocks in its portfolio.
Manager Comments	Insync Global Titans Fund decreased 0.40% in April, bringing the Fund's prior 12 month performance to 19.27%. More than half of the Fund's geographic composition was in North America at 59.10%. The key industry compositions consisted of Health Care at 26.1%, Consumer Discretionary at 19.70%, Consumer Staples at 16.60% and IT at 15.30%. The performance was driven by positive contributions from holdings in Microsoft, Publicis, BAT, Reckitt Benckiser and Nestle. The main negative contributors were McDonald's, Zimmer and Medtronic. The Fund continues to have no foreign currency hedging in place as Insync consider the main risks to the Australian dollar to be on the downside Click below to read the latest Fund Manager Report.
More Information	Fund Profile Manager's Report AFM Research Reports

Fund Monitors Pty Ltd

News

17 Jun 2015 - Morphic Global Opportunities Fund

16 Jun 2015 - Bennelong Kardinia Absolute Return Fund

16 Jun 2015 - Fund Review: Monash Absolute Investment Fund May 2015

MONASH ABSOLUTE INVESTMENT FUND

15 Jun 2015 - Allard Investment Fund

12 Jun 2015 - Bennelong Long Short Equity Fund

11 Jun 2015 - Fund Review: Insync Global Titans Fund April 2015

10 Jun 2015 - Monash Absolute Investment Fund

9 Jun 2015 - Fund Review: Supervised High Yield Fund April 2015

5 Jun 2015 - Signature Quantitative Fund

4 Jun 2015 - Insync Global Titans Fund

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